Thanks Jamie and Terry (nice to hear from you again Terry)

We won't be cross-collateralising, but am still interested in comments regarding the implications of having my wife as co-applicant with me (as trustee of our family trust). 

My income is limited but I think the bank sees it as insufficient should the IP become unrented or the rent be substantially reduced for some reason.   My wife being Guarantor on our other 2 IPs was seen as a necessary evil but now they want her as a joint applicant.   BTW the intended IP will be cashflow positive.

Are we in a position to call their bluff and threaten to go elsewhere if they don't make a "policy exception" and accept her as a Guarantor in lieu of a joint applicant?

Have you a comment please Richard?

Regards

Peter
 

You guys are awesome.

David – Thanks for your simple step-by-step response, including your "downside" comment.     You suggest 2 loans (one on the unit and one top-up loan on the new PPOR).     What forms would the 2 loans take?     We are currently with the CBA for two IO loans on our 2 investment properties.    Would the CBA be a suitable lender for this approach?

Tim – Your reply added further comment and reasoning to David's.    Thanks.

Kane – Thanks for your support for Option F.

Richard T and Terry W – Any comment would be most welcome.

Thanks Richard for your very clear and logical reply.

Thanks Terry.     When you say "You could pay cash, then mortgage these properties", I assume you mean pay for IP in full with cash (chq from LOC and cash ex offset a/c).    Then mortgage IP after settlement and put the money back into the LOC.

Thanks propertypower.   Your congrats and reply are appreciated.

Peter 
  

Thanks Richard.
Was looking forward to your comment, especially your clear explanation of Terry’s comment re “look at using the big banks now.”   
We are now putting the Port Elliot block on the market to free up the equity/funds to purchase IP(s)/commence a portfolio.   The block does not appear to have increased much in value over 12 months and we feel we can do much better.
Question:   Are we better off waiting to realise these funds and then pursue our first IP purchase based on:
.   equity held in unit of $250,000,
.   funds from sale of property – $145,000, and
.   cash in bank – $50,000?
We are looking at a property up to $400,000 with “guaranteed” rent of $400-500 pw.
How would we go about this and leave plenty of scope for further IP purchase in 6-12 months? 

Thanks also v8ghia.
I’m glad you also replied.   I value your clear and positive comments.   Thanks also for your congratulations and encouragement.
Yes – we do own our PPOR.
We have spoken to an agent re our Port Elliot block and will now sell it.   Will be able to take advantage of the CGT 50% discount on any small profit realised.
Re my question above to Richard.   Have you any suggestion as how to best structure to purchase a $400,000 / $400-500 rental IP (house)?

Thanks also Matt.
1.  We don’t think the build and rent scenario for the Port Elliot block is our best option. 
2.  Is an Investment Plan something you recommend to your clients?   IE to be formalised (written down) with dates for each planned action etc.
3.  Would you also like to comment on my question to Richard re an initial $400,000 IP purchase based on our equity?

Regards
Peter